Titanium oxide species included within the framework of mesoporous zeolites (Ti-MCM-41 and Ti-MCM-48) prepared by a hydrothermal synthesis exhibited high and unique photocatalytic reactivity for the reduction of CO2 with H2O at 328 K to produce CH4 and CH3OH in the gas phase. In situ photoluminescence, diffuse reflectance absorption, ESR and XAFS investigations indicated that the titanium oxide species are highly dispersed within the zeolite framework and exist in tetrahedral coordination. The charge transfer excited state of the highly dispersed titanium oxide species played a significant role in the reduction of CO2 with H2O exhibiting a high selectivity for the formation of CH3OH.